This hasn't changed since last time but it is being discussed again on the Cocoon users mailing list, so I collected some more links:

XSLScript looks much cooler than plain XSLT to write, but it doesn't seem to be widely used.

Here's a discussion among famous people about an abbreviated syntax for XSLT.

Linus has some opinions as well.

Update: Antonio asks for more advice on xsl-list. The replies roughly range from "ignore Linus" to "maybe people have been using the XML hammer for too many nails", with an interesting sidetrack on "to swear or not to swear".

Update: Oleg Dulin adds a few thoughts on his weblog.